Play The Bounce Or Use It As An Opportunity To Get Short?
On Monday, the Nasdaq chopped back and forth.

Ditto for the Ps.

So what do we do?
The oversold nature of the market
combined with my market timing signals suggests that we are in bounce mode.
However, except for index trades for the nimble, this in and of itself isn’t
reason to buy. Use this pullback as a chance to put together your list of
potential shorts. For now, (on the short side), you might want to focus on those
issues that can trade independently of the indices. With that said, energy and
metals & mining might be a good place to look for opportunities.
As far as setups, Precision Castparts
(
PCP |
Quote |
Chart |
News |
PowerRating), in the
weak steels (and let’s face it, what good is weak steel?), looks poised to resume its recent
rollover out of a First Thrust (as usual, email me if you need rules).

Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here for details.